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Author Question: The reason externalities distort the allocation of resources is that a. too few goods are usually ... (Read 84 times)

tsand2

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on: Jul 1, 2018
The reason externalities distort the allocation of resources is that
 a. too few goods are usually produced.
  b. firms often go out of business because of the externality.
  c. a firm's private costs do not reflect the social cost of production.
  d. regulating externalities uses scarce resources.

Question 2

Each of the following factors might interfere with the efficiency of perfect competition except:
 a. increasing returns to scale.
  b. imperfect price information.
  c. externalities.
  d. diminishing returns to scale.


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chinwesucks

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Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

d


tsand2

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Reply 2 on: Jul 1, 2018
Gracias!

xiazhe

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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